Looking for a way to make their franchise viable long term, Activision Blizzard is considering a plan to reduce debt among its Overwatch League and Call of Duty League teams, Esports Observer reported this week.
According to the report, many teams across both leagues are not profitable and the situation has only been heightened by the disruption caused by the COVID-19 pandemic. Of further concern is the Overwatch League’s relevancy amid the esports scene.
Overwatch League now has 20 teams, 12 of which came on board for the inaugural 2018 season at $20 million per team. The eight additional teams reportedly entered at an even higher franchise fee.
The Call of Duty League has 12 teams that entered for a $25 million franchise fee. CDL just completed its first season.
Immortals Gaming Club recently sold their CDL franchise to 100 Thieves and are considering selling their OWL franchise, according to the report.
There are no specifics on what franchise debt reduction toward Activation Blizzard would look like, with some speculation centering around a possible break for teams that entered at a higher franchise fee than the $20 million the original OWL franchises paid.
Franchises are considered key marking entities for Activision Blizzard video games.
–Field Level Media